In this article
Prepaid orders can't RTO-refuse, collect cash up front, and cost less to accept — so shifting share off COD is one of the highest-leverage things an Indian store can do. But banning cash outright loses real buyers. The move is to shift the share that will move and keep the rest, using a ladder of nudges rather than a blunt switch.
Why shift to prepaid
- A prepaid order can never be refused at the door — no RTO cost.
- The money is collected before dispatch, so no cash-cycle risk.
- UPI is cheaper to accept than the freight you eat on a refused COD.
The ladder — least to most aggressive
| Lever | What it does | When to use it |
|---|---|---|
| Prepaid discount | Nudges willing buyers online | Always — show it next to COD |
| UPI-first layout | Makes prepaid the default choice | Always |
| Partial COD | Takes an advance on the middle band | Risky or high-value orders |
| Prepaid-only | Removes cash entirely | Worst pincodes and highest-return SKUs |
Confirm the COD you keep
Whatever stays on cash should be confirmed before it ships — the cheapest RTO prevention there is.
Don't over-rotate
Push too hard and you refuse buyers who would have paid cash and kept the order. Segment by risk instead of blanket-blocking — more in raising prepaid share without killing conversion.
How IndiSell moves share
IndiSell prices a prepaid incentive next to COD, defaults to UPI, and applies partial or prepaid-only by risk band automatically. See Smart COD.
Frequently asked questions
How do I convert COD orders to prepaid? Show a prepaid discount, default to UPI, take a partial advance on risky orders, and make the worst pincodes and SKUs prepaid-only.
Will pushing prepaid hurt my conversion? Only if you over-rotate. Nudge and segment by risk instead of banning cash, and you keep the COD buyers who convert.
What is partial COD? The buyer pays a small advance online and the rest in cash — it filters unserious orders without refusing them.
Start here
Book a demo to see the prepaid ladder on your store.
See it live on a private preview of your checkout.